Bitcoin’s (BTC) price may pull back soon, but investors should leverage it to buy more, Bloomberg quoted market strategy firm Fundstrat Global Advisors as saying on May 3.
In a note to clients on May 2, Fundstrat analyst Robert Sluymer said that while bitcoin’s current strength marks the start of a longer-term bullish trend, the accumulation phase is not yet over.
BTC/USD has climbed throughout this week to hit 2019 highs on Friday, continuing on to achieve its highest levels since November 2018’s breakdown.
“Use pending pullbacks to continue accumulating Bitcoin in the second quarter in anticipation of a second-half rally through ~6,000 resistance,” he advised, signalling volatility should appear in the short term. Slyumer continued:
“While it’s premature to conclude Bitcoin will not retest support near $4,300, we would encourage traders and investors to remain focused on the bullish longer-term technical profile developing.”
Sluymer was following increasing bullish sentiment on Bitcoin from analyst circles, which this week included fellow Fundstrat executive Tom Lee, who also revealed he was positive on the coming year.
Specifically, 2020 should see Bitcoin post new historic all-time highs above $20,000, according to Lee.
Around the time of bitcoin’s November collapse, Sluymer had meanwhile correctly anticipated the trouble ahead, warning it would take time for bitcoin to recover its technical robustness.